SIDENOR, Basque industrial group, has set up a new Commercial Paper programme of 25 million Euro in MARF, BME’s Fixed Income market. The Programme will allow the company to issue short-term debt with maturities up to two years.
Its activity is structured in two business lines; special steels and forgings and castings. The Group has production facilities in Spain (Basque Country, Cantabria and Cataluña) and trade delegations in Europe (Germany, France, Italy and UK).
In Europe, Sidenor’s steel production capacity exceeds one million tons per year. This steel is mainly destined to the automobile, machinery, capital equipment, naval and civil construction, defense, energy, mining and petrochemical industries.
As of 2018 the Group had revenues of 898 million Euro and an EBITDA of 90 million Euro.
Commercial Paper is an efficient source of funding
Commercial Papers are short-term money-market securities used as a funding source by financial institutions, as well as governments, supranational agencies and mid and large corporations.
For corporate issuers, Commercial Papers are an extremely efficient funding source, that is complementary to banking facilities and credit lines. It is an efficient working capital solution via Debt Capital Markets.
Commercial Papers are issued under a shelf programme, that has an annual validity (renewable) and a predetermined maximum outstanding size. Notes under a CP programme may be issued at a discount or at a premium, they may bear fixed or floating rate interest. Although CPs, most usually, carry an implicit coupon, they are issued at discount and mature at par (100%)
Maturity of Notes ranges from 3 days to 24 months for Pagarés Programmes and from 1 to 364 days for ECP (European Commercial Paper Programmes).
Commercial Papers are multi-currency instruments that can be issued in different currencies; predominantly in EUR, USD, CHF and GBP. They have a minimum denomination of €100K and are intended for wholesale institutional investors, both national and international.
Source: BME (See the entire post)